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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 9.1 <br />Agenda Section Meeting Date Prepared by <br />Work Session July 19, 2021 Lori Ziemer, Finance Director <br />Item Description Reviewed by <br />American Rescue Plan Act Funds Utilization Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Discuss how to utilize funds received through the American Rescue Plan Act (ARPA). <br /> <br />Background/Discussion <br />In March of 2021, Congress passed the ARPA to provide local government funding to address the public health <br />and economic impacts of the COVID-19 pandemic. The city is expected to receive $2.6 million with half <br />distributed in 2021 and half in 2022. These funds are more flexible with a longer window of time for utilization <br />than CARES Act, funds are eligible for costs incurred from March 3, 2021, through December 31, 2024. <br /> <br />The city may use the funds for the following broad categories of assistance: <br />1. Responding to the Public Health Emergency <br />2. Address Negative Economic Impacts <br />3. Premium Pay for Essential Workers <br />4. Replace Public Sector Revenue Loss <br />5. Water, Sewer and Broadband Infrastructure Improvements <br /> <br />Funds cannot be used to offset a tax reduction or delay a tax increase. Because ARPA funds are temporary, they <br />should be used for non-recurring expenditures and not for ongoing operating costs. ARPA funding provides an <br />opportunity to make strategic investments in long-lived assets and enhance financial stability. <br /> <br />Staff is seeking a broad discussion with the City Council about what the Council would like to achieve with the <br />ARPA funds. Included is a list of potential projects for consideration. <br /> <br />Financial Impact <br />Utilization of ARPA funds. <br /> <br />Mission/Policy/Goal <br />Nurture resourcefulness to leverage strengths to meet changing needs. <br /> <br />Attachments <br /> Potential ARPA Funding <br /> US Treasury Quick Guide <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br />